Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000 respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?
A) $20,000
B) $9,000
C) $70,000
D) $63,000
B
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If a company dramatically lowers prices to take market share from rival firms, this is an example of
A. innovativeness. B. competitive aggressiveness. C. autonomy. D. proactiveness.
In response to the inability of general partners in accounting firms to shield themselves from
large jury sums awarded plaintiffs in lawsuits that were not covered by the firm's liability insurance, state legislatures created a new form of business, the limited liability partnership.
[The following information applies to the questions displayed below.]Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000.What value will be recorded for the building?
A. $800,000 B. $950,000 C. $175,000 D. $1,100,000
Evergreen Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment IIPeriod 1 $1600? $4320? Period 2 1600? 2960? Period 3 2960? 2960? Period 4 5440? 1360? Total $11,600? $11,600? Select the correct statement.
A. Evergreen should choose Investment I because of the time value of money. B. Time value of money techniques are not useful for comparing these investments. C. Evergreen should be indifferent between the two investments because they provide the same total cash inflows. D. Evergreen should choose Investment II because it generates more immediate cash inflows.